Connecticut Electricity Tax

[Glenn W]

Now I ain't got a Ph.D in economics from Yale, but I do know when a dog won't hunt.

There is a very good chance that proposed legislation in Ct. will pass in which nuclear generation (Millstone) will be taxed at $0.02/kwh. Although the State's remaining coal plant in Bridgeport will be subjust to a small amount of tax($0.005/kwh only during certain times), the lion's share will come from the State's only nuclear generating unit-- Millstone. Of the approximate total $345 million in tax revenue produced, the Millstone nuc will contribute $330 million.

The revenue from this tax will be supposedly be used to pay bonds that will be sold to promote conservation and subsidize alternative energy generation sources--- and after these are paid off, help reduce the State's ratepayers' electric bills----- yea right, I have three promises: the check's in the mail, I'm with the Govt. and I'm here to help, and I won't..........

The politicians and policy makers have hired various economists (Yale types) to support this bill by crafting all kinds of complicated pricing models that are not worth trying to even begin to explain, but claim that it will have no negative affect on consumers electricticy prices.----- so as a humble observer here's what these Einstein's are saying:--- by passing a $345 million tax on electricity generation in the State which will be borne by the lowest cost producer of electricity, there will be no detrimental impacts on consumers electricity prices---- yea right, well maybe you still believe the first two promises mentioned above, but the third just--- well you get the idea.

Although the polititians won't admit it, the underlying rationale is the belief that because the Millstone unit is so efficient it must be making huge profits and therefore can absorb these taxes from the profits it generates (the electric power that is generated is sold on the open wholesale market at market prices--- sort of anyway)---

So let me see if I understand things correctly?:
CT. has the second highest electric rates in the entire Country (second onlt to Hawaii),
The state deregulated retail electric generation rates in 2000 and since then electric prices have sky rocketed,
A significant reason that electricity prices have skyrocketed is due to the manadated "conservation" riders imposed on consumers bills to reduce electricity rates ( talk about the tail wagging the dog),
Their models indicate that a huge (and unprecidented) tax on the largest and cheapest generator in the State will not increase retail electricity prices but instead will help reduce such prices down the road,
This tax is being imposed to fund even more mandated conservation programs and to subsidize future "alternative" energy sources.

And this will help all the citizens and ratepayers in Connecticut?----

Thanks, but us good ole boys in the South have a much simplier plan---- Regulate electric utilities with tried and true policies and economic principles; stay away from all the economic hocus pocus models; provide utilities an oportunity to earn a fair profit on their investment; and for the most part, let technology and the free market system improve real conservation ( through increased efficiencies in appliances, heat pumps, etc.).
By the way, the cost of electricity in Va., NC, SC, and Ga are almost 50% cheaper than in Ct.---- Oh, and we in the South are building new--- clean, generating units to meet future demand------ wonder where Connecticut will get it's power in 10 or 20 years when there is a policy that the lowest cost producers pay punitive taxes?

[clt_capt]

Someone has to pay for all of those electric car charging stations... What a joke

[seapower]

You may not be from Yale, but that doesn't mean you can't smell a rat. But wait a minute, I thought that was the "new way" of doing business now. Tax to death those that are carrying the rest. Really no suprise to me. But in this age of "green" it would appear to me that it would be the other way around, the more efficent the less the tax. You know kinda like the carrot and the stick. Frank

[JD5652]

Not only will that dog not hunt.....he want have anything TO hunt....Dominion (owner of Millstone) has said that they will shut the plant down if the tax bill passes....now this may just be chest thumping......but Millstone is one of the largest employers in the state ans we're talking most of the jobs are $100K plus......

Here's more on the subject....

http://www.ctmirror.org/story/12218/...generation-tax

http://www.businessweek.com/ap/finan.../D9MJ2Q2G0.htm

Our new illustrous governor Mr. Dannal Malloy (no that's not a typo....it's actually Dannal....funny it was "Dan" during elections) is trying to tax anyting that moves...... which includes new taxes related to marinas and boats and boating....tme to move back home to the promised land......